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Chrysler Deal Heralds
New Direction for Detroit

Cerberus Takes Gamble
On Union Concessions;
GM, Ford May Benefit

By

Gina Chon,

Jason Singer and

Jeffrey McCracken

Updated May 15, 2007 11:59 p.m. ET

(See Corrections & Amplifications item below.)

By effectively agreeing to give away 80.1% of Chrysler Group to private-equity firm Cerberus Capital Management LP, German auto maker DaimlerChrysler AG has set the table for a potentially far-reaching restructuring of Detroit's faltering auto giants.

The New York investment firm and the German auto company have set an ambitious goal: to work with the powerful United Auto...

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